1 / 18

STP In Korean Securities Market

Learn about Korea Securities Depository's STP services, InSet System, market statistics, and future plans for seamless investment processing. Explore the overview, front office STP, InSet characteristics, trading processes, and settlement procedures. Get insights into the Korean market's non-exchange and exchange transactions, including stock, bond, and money market instruments. Discover the linkage between matching and book-entry systems, delivery versus payment protocols, and money transfer instructions. Stay informed about the latest statistics on stock and bond trading volumes. Get ready for the next generation IT system project and the integration of CCF in settlement processes for an internationally compatible investment experience.

eliasc
Download Presentation

STP In Korean Securities Market

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. VISION 2015 We bridge Asia and the rest of the world as Global Partner with internationally compatible investment services STP In Korean Securities Market 2008. 6. 2. Korea Securities Depository

  2. Table of Contents Ⅰ. Overview Ⅱ. STP in Front Office Ⅲ. InSet System Ⅳ. Statistics Ⅴ. Future Plan

  3. Ⅰ. Overview-KSD • KSD is the only CSD providing custody, clearing and settlement services in Korean Market • Settlement services include • Exchange and Non-exchange transactions • Stock, Bond (Corporate, Government), Money Market Instrument (CD, CP), Trust Unit, Mutual Fund, etc. • Settlement Volume (KRW trillion) • 2,168(’05)→ 2,233(’06)→ 2,430(’07) -1-

  4. Broker Broker Broker Broker Investment manager Investment manager Ⅰ. Overview-Korean Market Non-exchange Exchange Front office Trade Orders (Tel, E-mail ) Trade report (Tel, Fax, E-mail ) Matching Allocation (Fax, E-mail ) Back office Affirmation (Fax, E-mail ) Trust bank Settlement Settlement Bank Settlement Bank -2-

  5. Broker2 Broker3 Broker4 Broker1 OMS FIX Engine FIX HUB Ⅱ. STP In Front Office • Samsung Investments introduced FIX System in 2003… • 43 Brokers, 11 Investment Managers -3-

  6. Next Generation Sys(’10.5) 4Stage 3 Stage • FundNet (’04.4) 2 Stage • Bond(’99.11) 1 Stage • Introduction (’90.2) Ⅲ. InSet-History • KSD introduced InSet System (Institutional Settlement System) in 1990… -4-

  7. Ⅲ. InSet-Characteristics • Linkage between matching system and book-entry system • Stock (ETF, ELW), Bond (CD, CP) • Delivery Versus Payment • DVP1(Bond), DVP3(Stock) • Central Bank Money • Network • CCF / Web • Message format / Code • Proprietary Message format / ISIN(ISO6166) -5-

  8. Broker Broker Institutional Investor Institutional Investor 1.Trade report (CCF) 1.Trade report (Web) 5. Settlement statement (Web) 2.Affirmation (Web) 5.Settlement statement (Web) Ⅲ. InSet – Stock (Institutional Investor) Orders (Tel, E-mail ) Trade Matching 3. Matching 4. Netting 6. Blocking 9. Securities transfer 10.Settlement result (Web) 10.Settlement result (Web) Settlement 7.Money transfer instruction (CCF) 8.Money transfer result (CCF) 7.Money transfer instruction 7.Money transfer instruction -6-

  9. Broker Broker Investment manager Investment manager 1.Trade report (CCF) 1.Trade report (CCF) 4. Allocation (CCF) 8.Settlement statement (Web) 5. Affirmation (Web) 2. Allocation (CCF) 8.Settlement statement (Web) Ⅲ. InSet – Stock (Fund) Orders (FIX, Tel ) Trade FundNet 3. Matching (1.2) Matching 6. Matching (1.5) Trust bank 7. Netting 9. Blocking 12. Securities transfer 13.Settlement result (Web) 13.Settlement result (Web) Settlement 10.Money transfer instruction (CCF) 11.Money transfer result (CCF) 10.Money transfer instruction 10.Money transfer instruction -7-

  10. Broker Broker Foreign institution Foreign Institution 1.Trade report (Web) 1.Trade report (CCF) 5.Settlement statement (Web) 8.Settlement statement (Web) 2. Affirmation (Web) Ⅲ. InSet – Stock (Non-resident) Orders (FIX, Tel ) Trade NOE NOE Allocation Trade report Trade report Matching Local custodian 3. Matching 4. Netting 6. Blocking 9. Securities transfer 10.Settlement result (CCF) 10.Settlement result (CCF) Settlement 7.Money transfer instruction (CCF) 8.Money transfer result (CCF) 7.Money transfer instruction 7.Money transfer instruction -8-

  11. Dearer Dealer Institutional Investor Institutional Investor 3. Settlement statement (Web) 1.Trade report (CCF) 3.Settlement statement (Web) 1.Trade report (Web) Ⅲ. InSet – Bond (Institutional Investor) Trade (Tel, E-mail ) OTC Trade Matching 2. Matching 4. Blocking 7. Securities transfer 8.Settlement result (Web) 8.Settlement result (Web) Settlement 5.Money transfer instruction (CCF) 6.Money transfer result (CCF) 4.Money transfer instruction 4.Money transfer instruction -9-

  12. Dealer Dealer Investment manager Investment manager 4. Allocation (CCF) 1.Trade report (CCF) 1.Trade report (CCF) 7.Settlement statement (Web) 5. Affirmation (Web) 2. Allocation (CCF) 7.Settlement statement (Web) Ⅲ. InSet – Bond (Fund) Trade (Tel, E-mail ) OTC Trade FundNet 3. Matching (1.2) Matching 6. Matching (1.5) Trust bank 8. Blocking 11. Securities transfer 12.Settlement result (Web) 12.Settlement result (Web) Settlement 9.Money transfer instruction (CCF) 10.Money transfer result (CCF) 9.Money transfer instruction 9.Money transfer instruction -10-

  13. Ⅳ. Statistics-Stock • Total 207 participants (2007) -11-

  14. Ⅳ. Statistics-Stock • Trading volume by InSet vs Settlement volume by InSet Trillion won (82%) (82%) (82%) (79%) (48%) -12-

  15. Ⅳ. Statistics-Bond • Total 238 participants (2007) -13-

  16. Ⅳ. Statistics-Bond • Trading volume by InSet vs settlement volume by InSet Trillion won (74%) (74%) (73%) (76%) (49%) -14-

  17. Ⅴ. Future plan • Next generation IT System project will be completed in May 2010 • The project plans to introduces in InSet System • CCF in all settlement processes • ISO 15022 -15-

  18. Thank you!

More Related